* European/American pools at more of a disadvantage compared to the Chinese pools

* Risk of catastrophic consensus failure

* Risk of catastrophic consensus failure

+

=== Damage to decentalization ===

=== Damage to decentalization ===

* Bitcoin is only useful if it is decentralized because centralization requires trust. Bitcoins value proposition is trustlessness.

* Bitcoin is only useful if it is decentralized because centralization requires trust. Bitcoins value proposition is trustlessness.

Revision as of 09:09, 1 June 2015

Argument in favor of increasing the blocksize

Bigger blocks (more transactions per second)

Argument in opposition of increasing the blocksize

Orphan rate magnification, more reorgs and double-spends

European/American pools at more of a disadvantage compared to the Chinese pools

Risk of catastrophic consensus failure

Damage to decentalization

Bitcoin is only useful if it is decentralized because centralization requires trust. Bitcoins value proposition is trustlessness.

The larger the hash-rate a single miner controls, the more centralized Bitcoin becomes and the more trust using Bitcoin requires.

Running your own full node while mining rather than giving another entity the right to your hash-power decreases the hash-rate of large miners. Those who control hash-power are able to control their own hash power if and only if they run a full node.

Less individuals who control hash-power will run full nodes if running one becomes more expensive.

Larger blocks leads to more expensive full nodes.

Therefore, larger blocks lead to less hashers running full nodes, which leads to centralized entities having more power, which makes Bitcoin require more trust, which weakens Bitcoins value proposition.